Sunday, 19 August 2018
Latest news
Main » Flipkart co-founder Sachin Bansal likely to quit after Walmart's deal

Flipkart co-founder Sachin Bansal likely to quit after Walmart's deal

04 May 2018

In April 2015, an ET report quoted, "Investment firms Helion Venture Partners and IDG Ventures India have sold stakes in Flipkart in deads that value India's largest online retailer at $12.5 Bn (INR 77,000 Cr)". The world's largest retailer has struggled against Amazon as consumers increase their spending on the internet.

No final confirmation has, however, been made by any of the parties involved in the deal.

Earlier this week, Inc42 reported that Flipkart has set aside $400 Mn to buyback shares of minority investors.

This would still leave biggies like Tiger Global, Accel, Microsoft, Naspers and Ebay on the deal table, it said adding that Flipkart's holding company is now a private company - Flipkart Pte Ltd.

Oil pares gains, market supported by Iran worries
Crude rose after Israeli intelligence about Iranian nuclear ambitions heightened concern an global accord may unravel. Trading on the Shanghai International Energy Exchange is closed for a Chinese public holiday.

In a huge merger on Thursday, reports suggest that USA retail giant Walmart Inc has signed a deal to acquire 73% of controlling stakes of Indian e-retail company Flipkart - a deal that will likely prompt the exit of Flipkart's co-founder Sachin Bansal. Alphabet is investing $3 billion in the deal, though the exact details of its involvement were not clear.

SoftBank has already given the green signal for the deal.

If the deal in India gets fructify according to present scenario then Google and Walmart will replicate their business synergies in India on the lines of the US.

It is unlikely that Flipkart will agree to sign over such an extensive part of its shares to either party: only last month, Flipkart shareholder Softbank resisted Walmart's bid for just 30% of the Indian company. Both forged a partnership in the U.S. past year where Walmart products are sold on Google Express, the tech giant's online mall.

Armenian opposition leader calls for strike
The Republican Party had reportedly given assurances that it would not block Mr Pashinyan's bid for the PM's office. Student Laura Shahverdyan, 22, said the country was united in its demand that the Republican Party's rule must end.

Mint reported on Wednesday that Walmart also wants Flipkart co-founders Binny Bansal (group chief executive officer) and Sachin Bansal (executive chairman) and CEO Kalyan Krishnamurthy to continue in their roles after the acquisition.

According to the documents, the buyback is a significant step towards Flipkart converting itself into a private company as per Singapore law, paving the way for its proposed sale to Walmart. Amazon is out of the running unless Walmart hits unforeseen trouble.

Walmart would maintain a focus on the grocery market, said the sources, suggesting that nearly 50% of Walmart's initial investment would be funneled into building a food and grocery supply chain.

Burning building in Sao Paulo collapses, at least 1 dead
He had envisioned a revitalized downtown, a glitzy showcase for one of the hemisphere's most important financial centers. That blaze was brought under control relatively quickly, São Paulo Fire Brigade Lieutenant André Elias told Globo TV.

Flipkart co-founder Sachin Bansal likely to quit after Walmart's deal